Dan Veru expects big things from small caps. The executive vice president and co-chief investment officer of Palisade Capital Management says that as the market regains confidence, investors will seek more risk. Enter small caps.

New York's attorney general and securities regulators in several U.S. states are probing auction-rate securities and the role Wall Street firms had in enticing investors into the troubled $330 billion market.

Another day - another merger! On Thursday, Wachovia (WB) -- which is the nation's fourth largest bank -- scooped up regional broker AG Edwards & Sons (AGE) for nearly $7 billion . Yes, that AG Edwards, the venerable 120-year old St. Louis-based brokerage house. What does that mean for the future of regional brokers?

Wachovia's $6.8 billion agreement to buy A.G. Edwards is likely to spur more acquisitions of independent brokerage firms, analysts say. The reason: banks are trying to bulk up on brokerage services, while traditional outfits like Edwards are dwindling in number and losing clients to cheaper online competitors.